Leave Encashment Calculator
Leave encashment payable on retirement or resignation.
Enter your details
How it is calculated
Worked example
120 days at last salary ₹60,000: 120 × 60,000 ÷ 30 = ₹2,40,000. With 25 years of service and 150 days taken, eligible leave = 600 days; the limits are ₹2,40,000 (received), ₹25,00,000, ₹5,80,000 (10 × ₹58,000) and ₹2,32,000 for 120 days at ₹58,000 ÷ 30 — so exempt = ₹2,32,000 and taxable = ₹8,000.
About the Leave Encashment Calculator
Leave encashment payable on retirement or resignation. This free payroll & compliance tool runs entirely in your browser: nothing you type is sent to a server, and you can save, print or download the result.
What you need to enter
You will be asked for last drawn monthly salary — basic + da (₹), average monthly salary of the last 10 months (₹), leave days being encashed, years of service with this employer, earned leave already availed / encashed earlier (days), occasion of encashment and a few more details. Fields marked * are required. Every field shows a hint and the allowed range.
How to use it
- Fill in the inputs (sample values are pre-filled so you can see how it works).
- Press Calculate to see the result, breakdown and chart.
- Use Print, Download PDF or Share to keep the result, or come back to it from your saved history.
Who it helps
Salaried individuals, business owners, investors and professionals who want a quick, transparent estimate before they file, invest or plan. If your case has special facts, our team can review it - ask for a consultation.
Results are estimates based on the rules and rates described under "How it is calculated". Laws change and individual facts differ, so confirm with official sources or a qualified professional before acting. This is not tax, legal or investment advice.
Frequently asked questions
Is leave encashment on resignation taxable?
Generally yes. The section 10(10AA) exemption is for encashment at retirement or superannuation, so on resignation or during service the amount is taxed as salary in the year of receipt.
How many leave days can be encashed?
That depends on company policy. For the tax exemption, only earned leave up to 30 days per year of service (less leave already taken) counts.
What salary is used for the calculation?
Employers commonly use last drawn basic + DA ÷ 30 (some ÷ 26). For the exemption test the law uses the average salary of the 10 months before retirement.
Need help beyond the calculator?
Talk to our tax and compliance team for advice based on your documents.